The U.S. Department of Agriculture announced the publication Jan. 15 of interim technical guidelines for climate-smart agriculture crops used as biofuel feedstocks. The rule lays out how to “carbon-score” three crops used for biofuels: corn, soybeans and sorghum.
“The new guidelines are a win for farmers, biofuel producers, the public and the environment,” Agriculture Secretary Tom Vilsack said. “The action today marks an important milestone in the development of market-based conservation opportunities for agriculture. Today’s action also builds on the Biden-Harris administration’s historic work to create greater opportunity for homegrown, renewable biofuels. From making E15 more widely available at gas station pumps and approving record biofuel levels, to investing in infrastructure to help communities invest in biofuels, to accelerating a future for sustainable aviation fuels, this administration created pathways for economic growth that will reverberate for generations to come.”
“America’s farmers play a critical role in building the clean energy economy,” said John Podesta, White House senior adviser for international climate policy. “Today’s announcement from USDA reinforces the important role climate-smart agriculture plays in our rural economy, including in fueling clean transportation solutions, as well as the importance of providing pathways for unbundled, science-based accounting of the carbon benefits of climate-smart practices that help farmers earn more for what they grow.”
The rule covers ways to score CSA practices that could reduce GHG emissions or sequester carbon, including reduced till and no-till; cover cropping; and nutrient management practices, such as the use of nitrification inhibitors. The interim rule allows for adoption of CSA practices both individually or in combination.
Clean Fuels Alliance America said it appreciated the USDA’s issuing of the interim guidelines, along with a beta version Feedstock Carbon Intensity Calculator.
GREET model
Clean Fuels also welcomed the Department of Energy’s release on the same day of the 45ZCF-GREET model for use in calculating carbon intensity scores and associated values for the 45Z Clean Fuels Production Credit. The 45ZCF-GREET model and associated documentation provide needed clarity on how producers can calculate the credit and include its value in negotiating fuel sales and feedstock contracts. The Climate Smart Ag model outlined by the USDA requires further work and cannot currently be calculated into the value of the 45Z credit.
Kurt Kovarik, Clean Fuels vice president of federal affairs, said, “We appreciate Treasury, USDA and the Department of Energy issuing these long-awaited rules and models. We also thank the many members of Congress who urged the administration to publish this guidance as soon as possible. Biodiesel and renewable diesel combined are meeting 9% of U.S. demand for distillate fuel for heavy-duty transportation needs. These rules are crucial to our industry, and continued growth in the industry is essential to the agricultural sector and to U.S. energy security. We will continue to work with our members to evaluate whether today’s releases provide clean fuel producers the policy certainty they need to negotiate feedstock and fuel offtake agreements, and ultimately grow the production and market for biomass-based diesel.”
Kovarik added, “USDA’s rule could enable American farmers and biofuel producers to calculate the carbon benefits of conservation practices. We look forward to continued work with USDA, Treasury and the Department of Energy to ensure that farmers can financially benefit by adopting these practices and cooperate with clean fuel producers to increase the value of domestically produced clean fuels.”
